Group Members
馬立歐
MA1N0225
陳奕光
M9970112
伊詩卉
MA1N0246
Problem…
The Coca-Cola Company, its subsidiaries and products have been
subject to sustained criticism by both consumer groups and
watchdogs, particularly since the early 2000s.
Allegations against the company are varied and criticism has
been based around;
• Possible health effects of Coca-Cola products
• Questionable labor practices (including allegations of involvement with
paramilitary organizations in suppression of trade unions)
• The company's poor environmental record
• Perception of the companies' engagement in monopolistic business practices
• Questionable marketing strategies and violations of intellectual property rights.
Perception of the company as behaving
unethically has led to the formation of pressure
groups such as "Killer Coke", boycotts of Coca-Cola
and related products and lawsuits
What should Coca Cola do to appease
and ensure its survival in the market?
• First it has to convince Indian’s government, the
world and re-gain the market by:
• A variety of corporate social responsibility
initiatives, for example with campaigns such as
“Every Drop Counts”.
• Campaigns to save water, against pollution,
recycling and of course, healthier products.
Also, try to solve problems such as:
Health effects
• Acidity
• High fructose (sugar
and carbs)
• India secret formula
ban
• Most nutritionists advise that CocaCola and other soft drinks can be
harmful if consumed excessively. (a
lot of sugar and carbs)
• Regular soft drink users have a
lower intake of calcium,
magnesium, ascorbic
acid, riboflavin, and vitamin A.
• The drink has also aroused criticism
for its use of caffeine, which can
cause physical dependence.
• A link has been shown between
long-term regular cola intake
and osteoporosis in older women
(but not men).
Environmental issues
Pesticide use
Water use
Plants pollution
• In India, there exists widespread concern
over how Coca-Cola is produced.
• In particular, it is feared that the water
used to produce Coke may contain
unhealthy levels of pesticides and other
harmful chemicals.
• It has also been alleged that due to the
amount of water required to produce
Coca-Cola, aquifers are drying up and
forcing farmers to relocate
• There were several protests opposing
the proposed Coca-Cola bottling plant in
fear of water depletion and
contamination.
Economic business practices
Monopolistic
Marketing
"Channel stuffing" settlement
Bribery accusations
• Buying biggest companies in
each country
• Coca-Cola has been accused
of bribing the American
Academy of Pediatric
Dentistry (AAPD)
• Commercials with healthy
image
In this way, Coca Cola wont have so
many obstacles to fight with every
country’s government.
Therefore, an easier way to survive
in the market.
Question 2:
What effect will this case have on
Coca-Cola‘s operations in India ?
http://www.youtube.com/watch?v=f
ajiWmAuvSY
Coke in India
• When Coke first entered the Indian market:
– The Company had enormous sales and gained significant
market share
– Coke has become a popular soda in the Indian market
• BUT in 1977, Coke forced to exit India
• However, in 1994, Coke reentered the market
• In addition the company purchased some local cola and soft
drink brands (e.g. Thumbs Up)
• Set up a plant in Plachimada but had to shut it down again
after 4 years … WHY?
What happend?
• 2002 anti-Coke campaign started „Coca Cola, Quit
Plachimada, Quit India“
• People living next to the plant experienced water scarcity
• Furthermore the water was not drinkable anymore
• As a result everybody thought it is Coca Cola‘s fault and the
protestor group grew over time and was supported from
people all over the world
• Not only Coca cola was ordered to stop
using the ground water
HOWEVER, it was not only Coca Cola‘s fault
Beverages contained pesticide
Tests proved that a lot of beverages
contained high levels of pesticide that
were potentially harmful to human
beings
• As a result , Coca-Cola lost millions in the Indian
market
• But in order to gain back market share, the
company tried to get back the trust of the
population by investing in CSR initiatives
What effect will this case have on
Coca-Cola‘s operations in India?
• Coca Cola needs to rethink where to build up a
plant
• If a counrty has already water scarcity the
company should rather leave the water to the
people (coca cola needs 3liters of water to
product 1 liter of coca cola)
• In order to successful in Indial, Coca cola should
now invest in this country to help them to get out
of their position since the reputation of Coca cola
is not very good in India
• Coca Cola has to rethink where to built up a plant
that it doesn't effect the environment and the people
around the location (pollution and water scarcity)
• Establish a good CSR system to rebuild the brand
image and regain the trust of the people.
• Try to form an alliances with other companies (ex:
Pepsi) to fight prejudice against soda drinks.
• Or form an alliance with other comapnies in order to
fight against water pollution and water scarcity
Question 3:
What lesson does this case have for
other
multinationals that want to enter the Indian
market ?
Parexgroup- French Company
• Global leader maunfacturing of innovative and
high quality dry mix mortars
• 60 manufacturing facilities in 21 countries
• 3150 employees worldwide
• Product brands: Davco and Lanko
ParexGroup enters Indian market
• Operate in January 2013
• Local parter Apurva India Ltd.
• Establish the company's project sales and
marketing office in Mumbai
• By the end of 2013, ParexaGroup will be
operating 1st manufacturing plant in the India
• Offer a wider range of products and services
to customers
• Initially focus on 2 market segments:
waterproofing systems under Davco brand and
concrete maintenance and potential solutions
under Lanko brand.
• Committed to ensure activities preseny a high
level of protection for health
and safety of its employees,
customers, the publics, the
environment and meet statuory
and regulatory requirements
• 3 offices in Inian- Mumbai
Chennai, and Delhi
KONKA- Chinese Company
• Established in 1980
• Chinese leading CE and mobile Company
• Main prodsucts: color TV sets, mobile phon,
washing mechine,etc.
• 5 manufacturing plant in China, production
bases in India, Mexcio, and Turkey
KONKA sets to entre Indian market
• Enter Indian smart phones market with
investment of USD 30 million
• A strategic partnership with MAK Mobility
Private Limited in Indian
• An entry strategy focus on the high end
camera smartphone market
• KONKA launching a
product line for Indian
market:
1. Expose for avid
photographers
2. Tuxedo for business
excutives
3. Tango for music lovers
4. Viva for fashion divas
Enjoy the video: Coca-Cola in India
• http://www.youtube.com/watch?v=fajiWmAu
vSY